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Buyer Anxiety Rises Over Housing And Tariffs

Mar 26, 2025
First-time Millennial homebuyers are still agitated over not having enough funds to make a downpayment on a house, according a survey by Redfin

New report highlights mounting economic anxiety that could impact homebuyers and sellers in 2025

Rising concerns over tariffs and a potential housing market crash are driving economic anxiety among American consumers, according to a new survey from Clever Real Estate. The findings may have significant implications for mortgage professionals navigating an increasingly cautious buyer and seller landscape.

The report, based on a survey of 1,000 Americans, found that 81% are worried about tariffs and potential trade wars, and 70% fear a housing market crash in 2025. Additionally, 63% say the U.S. government is not taking the right actions to address economic challenges.

These concerns are translating into hesitation in the housing market. While more than half of Americans (54%) say they would prefer to buy now to avoid future price hikes, nearly a third (32%) of those planning major purchases in 2025 are delaying them. That includes 22% who planned to buy a home and 13% who intended to sell one.

"More than half of Americans (58%) are already cutting non-essential spending, and a surprising 32% are stockpiling necessities like canned food and first aid supplies," the report notes, suggesting a broader pullback that could impact real estate transactions.

At the same time, inflation remains a top concern. Three-quarters of Americans (74%) expect inflation to worsen over the next year, and 70% report greater concern now than they did in September 2024. Just 39% support President Trump's handling of the issue, and 72% believe tariffs will hurt the U.S. economy.

Financial uncertainty is also driving concerns about housing affordability. Nearly one-third (32%) worry they won’t be able to afford housing payments due to the 2025 economic outlook. Only 26% of respondents say they are better off financially than six months ago, and just 34% expect to be better off six months from now.

While many Americans (78%) support cutting government spending in theory, only 46% approve of the current administration’s approach. Support for Elon Musk’s Department of Government Efficiency (DOGE) stands at 44%.

Increased economic strain is also influencing broader financial behavior and sentiment. Three out of four Americans (75%) say cuts to assistance programs would directly impact them or their families, and 11% say they would fear becoming homeless. Concerns about Social Security lead the list, with 85% expressing worry about benefit changes.

For mortgage professionals, these indicators suggest a market marked by caution, delayed decision-making, and heightened sensitivity to economic shifts. As one data point among many, this report reflects growing consumer unease that could shape lending behavior and homebuyer motivation throughout the year.

 

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